The International Monetary Fund (IMF) has demanded that the issue of K Electric’s dues and subsidies be resolved this fiscal year.
Power division and K Electric have a dispute over Rs 66 billion dues since 2013, the subsidy given to K Electric is double that of government DISCOs, this amount is in revolving debt on which the government has to pay huge interest rates.
According to Finance Ministry sources, the IMF has demanded to resolve the issue of K Electric’s dues and subsidies in the current financial year.
IMF told Prime Minister Shehbaz Sharif that for 10 years this issue is not been resolved, K Electric has to pay gas dues to Sui Southern and electricity dues to NTDC.
In this regard, K Electric thinks that dues will be paid from the Karachi Water and Sewerage Board.
It should be noted that the contract of K Electric was terminated in 2015, a few months ago a new agreement was signed between the caretaker government and K Electric for the purchase and sale of electricity.